Originally Posted by Defoler
A few things that are missing from tom's report:
1. Softbank has 36B$ in debt but hold 227B$ in equity. And they wanted to reduced the debt, hence selling stocks or reducing funds (like 14B$ less investment in weworks for 2019).
This is why people who never worked on or around wallstreet shouldn't comment on stock news. You're mostly right, though the debt is entirely paper. see a huge percentage of major trades on wallstreet are leveraged trades, meaning they're made on debt. The fact a financial institution has debt means absolutely nothing excepting for the fact that they're doing leveraged trading, which every financial institution does.
Billions of dollars can change hands on wallstreet then change again all on debt instruments on a daily basis. Even more interesting is how many trades take place without actual money changing hands at all. See traders on wallstreet can actually buy stock and then hold off paying for that stock for 3 days. Of course sometimes the expected turn around sale doesn't happen and the financial institution will then pay for the stock which they're holding on to past 3 days with debt still intending to sell it for a profit shortly.
I'd be more concerned about a large player like softbank not having debt at all.